Airport Authority Hong Kong (AAHK) has issued HK$19 billion (US$2.4 billion) of multi-tranche senior notes, the largest Hong Kong dollar-denominated bond offering to date, drawing nearly three times oversubscription.

The success of the offering reinforces the Hong Kong dollar’s position as a reliable funding currency and the city’s role as a fixed income and currency hub, according to bankers.

The notes were “well received” by investors including sovereign wealth funds, asset managers, corporations, banks and insurance companies, with a combined peak order book of more than HK$55 billion, representing a subscription rate of 2.9 times, according to a statement issued by AAHK on Wednesday evening.

The authority said it would use the net proceeds to “refinance existing indebtedness, to fund its capital expenditure, and for other general corporate purposes”.

“The successful Hong Kong dollar-bond issuance amid market uncertainty highlights Airport Authority’s strong credit standing,” said Vivian Cheung, chief executive officer of AAHK.

The offering had three tranches – three-year, five-year and 10-year notes – priced at 2.90 per cent, 2.97 per cent, 3.38 per cent, respectively. The offering was priced on Tuesday. The notes were expected to be rated “AA+” by S&P Global Ratings, according to the authority.